BAS 282: Marketing Ethics: SmartBook

Maximizing positive social impact and minimizing the harm it may cause to stakeholders in the course of doing business is known as ______.

corporate social responsibility

The American Marketing Association (AMA) Code of Ethics states that all marketers must embrace and promote three ethical norms. The first of these, which directs marketers to purposefully avoid engaging in damaging activities in their decision-making and adhere to all applicable laws, is ______.

"Do no harm"

The moral standards collectively expected by society are known as ______.

ethics

When marketers balance the needs of the buyer with the interests of the seller in a just manner, they are practicing the ethical value of __________.

fairness

Exemplifying the core ethical value of __________ requires marketers to be forthright when dealing with customers and stakeholders by honoring the claims made about their products and services.

honesty

According to the American Marketing Association's Code of Ethics, to which of the following groups do marketers have special commitments?

* Children * Seniors * Impoverished People

Which of these statements about sustainable marketing are true?

* Cutting packaging costs is an effective technique for sustainability. * Consumers boycott companies that fail to enact sustainable marketing. * Sustainability is part of the ethos of some companies.

Which of the following are among the major criticisms consumers have of marketing?

* Deceptive prices * High prices * High-pressure selling * Unsafe products

Which of the following are ethical values in marketing?

* Honesty * Fairness * Responsibility

Pioneer Solar, Inc. has developed an innovative new solar cell that produces 50 percent more electricity from the same surface area as its nearest competitors' products. The proprietary technology took the company more than 10 years to develop, and Pioneer Solar feels it will give it a competitive advantage in the renewable energy market sector. Such a company is well positioned to employ ______ marketing strategy.

an eco-branding

Thoroughly Modern Makeup is trying to determine how best to price its new line of cosmetics made from environmentally friendly ingredients. The new line costs more to produce than the company's other products, but the company's customer base has traditionally resisted paying higher prices. Therefore, thoroughly Modern Makeup is likely to use ______ marketing strategy.

an environmental cost leadership

Universal Marketing Solutions strives to adhere to ethical guidelines and values when creating promotional campaigns for its clients. It considers fairness a particularly important value to uphold. To ensure success in meeting the standards of fairness, the company must ______ in its marketing materials.

avoid the use of manipulation

A department store chain sends out a team of marketers to various stores to observe its customers while they shop. In one store, a customer is overheard telling a friend, "I don't like shopping here because the salespeople always try to convince me to buy more." This complaint falls under the category of ______.

high-pressure selling

Lata, who heads the marketing department at Deep Dive Equipment, learns that one of the company's dive watches, guaranteed to be waterproof to 300 feet, is leaking when people wear it in the shower. Lata creates an e-mail to be sent to all purchasers of the faulty watch, offering them free repair and a coupon for 50% off the purchase of any new item. Her team also runs an ad alerting customers to the issue and the company's plans to solve it. This scenario demonstrates the ethical value of ______.

honesty

After marketers have identified a specific problem in an unbiased way and determined what ethical issues are at stake, the next step in the ethical decision-making framework is ______.

identifying stakeholders who are likely to be affected by the decision

Established standards of conduct that are expected by society and professional organizations are known as ethical __________.

norms

Following a backlash of people claiming that its products contribute to obesity and diabetes, Sweetened Beverages Limited decides it should give back to the community. It sponsors a series of local sporting events, including a marathon, where it donates bottled water for participants and sets up a booth staffed with nutritional experts to provide free information to the public. In this example, Sweetened Beverages Limited is embracing the ______ dimension of corporate social responsibility.

philanthropic

A food distribution company reduces the use of plastic packaging for its house brands and purchases carbon offsets to reduce its ecological footprint. This represents the ______ greening level of sustainable marketing activities.

quasi-strategic

Sharon is asked by her boss to create an untrue marketing message implying that the company is donating money to environmental causes even though it is not. The message will immediately increase sales before anyone discovers that it is misleading. In this example, Sharon's boss is asking her to put the company's short-term sales gains ahead of its long-term ______.

reputation

Drag each description to the corresponding dimension of corporate social responsibility. No items may be used more than once.

* Legal - Following local, state, and federal laws as well as the laws and regulations of foreign countries. * Economic - Fulfilling the obligation to stakeholders to be profitable. * Ethical - Facing challenges that fall into gray areas of right and wrong. * Philanthropic - Voluntarily donating money or resources to charitable causes.

Which of the following are major criticisms consumers have of marketing practices?

* Planned obsolescence * Materialism * Marketing to children * Deceptive Promotion

Limiting the lifespan or availability of a product

Planned obsolescence

Identify the ethical issue at hand matches

All Day Enterprises needs to decide whether to hire lower-paid workers from a personnel company to replace their production staff.

Determine the facts in a unbiased manner

Brady carefully investigates a number of reasons why costs have decreased despite being certain it is because a supplier is using inferior parts.

Consider how the decision will affect the stakeholders matches

Choice, If Turnip to Tomato produce relocates, some employees will lose their jobs, and some of their partnering corporations may go bankrupt when they lose their partnership. If Turnip to Tomato produce relocates, some employees will lose their jobs, and some of their partnering corporations may go bankrupt when they lose their partnership.

Consider all available alternatives matches

Choice, Rebecca must decide whether to farm her land with potentially hazardous chemicals, farm it by tilling the soil and causing erosion, or mine gravel, which will destroy her farmland. Rebecca must decide whether to farm her land with potentially hazardous chemicals, farm it by tilling the soil and causing erosion, or mine gravel, which will destroy her farmland.

For 50 years, Dean's trailer company has bought top-quality wheels from Jim's company. Jim just told Dean he skips inspections to save money. Now Dean must decide whether to keep buying Jim's wheels and pay to do his own inspections or tell his customers and regulatory authorities about what Jim is doing and use safer but lower-quality wheels from another supplier. Which step of the ethical decision-making framework does Dean's situation represent?

Consider all available alternatives

Attempting to persuade customers to buy more than they intended

High-pressure selling

In a company meeting, Larry points out to his marketing team that opening a proposed new outlet store will create a great deal of traffic in a nearby neighborhood with many elderly drivers. Which step of the ethical decision-making framework do Larry's actions represent?

Identifying the stakeholders affected by the decision

Discuss the pending decision with the stakeholders matches

Lanae calls a meeting to explain to workers that the warehouse is thinking of moving to a three-day work week with twelve-hour days.

Adhering to all local, state, and federal regulations is an aspect of which dimension of corporate social responsibility?

Legal

Selling to a vulnerable audience that is susceptible to manipulation

Marketing to children

Focusing on the acquisition and possession of objects and things that people may not need

Materialism

What are ethics?

Moral standards expected by society.

Ray's Snack Company has just begun several new projects. Which of the projects is an example of sustainable marketing?

Ray's main production plant has purchased two large wind turbines that allow it to run almost completely on renewable energy.

Make the decision

Rhett signs a purchase agreement with a large corporation to sell his plumbing business.

Identify the stakeholders impacted by the decision

Sandra notes that building a new factory will affect workers, customers, suppliers, and neighbors.

Creating goods with poor quality control due to attempts to cut costs

Shoddy or unsafe product manufacturing

What is the definition of sustainable marketing?

The process of creating, communicating, and delivering value to customers by preserving and protecting the natural systems that provide the resources upon which society and the economy depend

Raising prices due to high distribution costs, advertising costs, and excessive markups

Using high prices

Spreading false sales information that encourages customers to believe they are getting a better value than they actually are

Deceptive pricing

A commercial for the Dynamo Deltoid Developer shows a man who says he can do 30 pull-ups after using the product for only two weeks. What the company fails to tell customers is that the man could do 38 pull-ups before he began using it. Which commonly criticized marketing technique has the Dynamo Deltoid Developer team used?

Deceptive promotion

Using a smaller serving size to underrepresent the fat or calorie content of a product

Deceptive promotion

Après Apparel makes high-quality postworkout garments and focuses on quality in advertising, but sales have been flat. Marco, one of the company's marketing associates, suggests that they switch to making some of their best-selling items from sustainably sourced materials. Manufacturing costs will likely go up, but Marco believes a new ad campaign that draws attention to their eco-friendly stance will differentiate their products from the competitors' offerings. Marco's suggestion represents the ______ marketing strategy.

beyond compliance leadership

Malik sees a news story about a marketing firm that has been found to improperly target children in its tobacco ads and recognizes the firm as one his own company uses. He tells his boss he thinks they should cut ties with the marketing firm in question. His boss agrees and suggests they make a donation to an organization that fights manipulative advertising aimed at children. In this example, Malik's firm is demonstrating ______.

corporate social responsibility

Striving to have the largest possible positive effect on society while keeping any detrimental effects to a minimum is known as ______.

corporate social responsibility

The marketing team at Precision Bicycle Parts has created marketing materials for a new, improved line of off-road racing cranks. The marketing manager holds a company-wide meeting during which she acknowledges the input of customer service representatives, who pass along customer concerns about previous products; the outside sales force, who polls existing customers about what they most want to see in future products; and the help of a consultant group whose research has shaped the campaign. In this example, the marketing manager demonstrates the ethical value of ______.

respect

Sandy Bottom Boating Supplies is coordinating all of its business activities in accordance with sustainable practices. This represents the ______ greening level of sustainable marketing.

strategic

When a company takes a holistic approach to improving its commitment to sustainability in all aspects of its business dealings, it is known as ______ greening.

strategic

The process of creating and delivering value to customers by preserving and protecting natural systems is known as __________ marketing.

sustainable

Nature Is Perfect sells Pimple Be Gone! to help prevent and reduce acne breakouts. Nature Is Perfect doesn't guarantee customers will never get acne or that all skin problems will magically disappear. But it does stand by its claim that those who use its product regularly will have significantly clearer, healthier skin. A direct competitor, Skin in the Game, has started marketing a product just like Pimple Be Gone! called No More Pimples. The new product even has similar packaging. One big difference between the two products is that the advertising for No More Pimples promises that the product will clear up all signs of acne within a week—and that users will never have skin problems again. Which of the following core ethical values is Skin in the Game violating with its marketing of No More Pimples?

* Honesty * Respect * Responsibility * Fairness * Transparency

Which of these statements about corporate social responsibility are true?

* It requires minimizing negative impacts. * It requires maximizing positive impacts. * It must be embraced by all departments in a company in order to succeed.

Which of these are among the six core ethical values in marketing?

* Transparency * Citizenship * Respect

According to the American Marketing Association (AMA) Code of Ethics, norms dictate that marketers must ______.

* foster trust in the marketing system. * do no harm * embrace ethical values

When a company ignores ethical issues or does not follow a clear ethical code, it runs the long-term risk of ______.

* hurting its customers and employees. * putting itself out of business. * ruining its reputation. * tarnishing its brand.

It is important for marketers to conduct themselves in a way that reflects ______ in a positive and ethical manner.

* themselves * their profession * their company

Place the last four steps of the ethical decision-making framework in order from first to last, with step 5 at the top and step 8 at the bottom.

1. Consider how the decision will affect the stakeholders. 2. Discuss the pending decision with the stakeholders. 3. Make the decision. 4. Monitor and assess the quality of the decision.

Which of the following actions are the first two steps of the ethical decision-making framework?

1. Identifying the ethical issue at hand. 2. Determining the facts about a potential decision in an objective manner.

Monitor and assess the quality of the decision

Choice, Alyce tabulates changes in the number of sick days employees have taken since her company installed a new air filtration system in all of its facilities. Alyce tabulates changes in the number of sick days employees have taken since her company installed a new air filtration system in all of its facilities.

Creating a credible green brand is the focus of which of the following sustainable marketing strategies?

Eco-branding

EcoYachts is a new company entering the luxury yacht market. Unlike other companies making high-end watercraft, EcoYachts sources all of its materials from either sustainable, renewable, or recycled sources, and its yachts are powered by clean-burning fuel cells. In addition to these advantages, the company offers a lower price point for its entire line of products than conventional yachts without sacrificing the level of luxury. The company's goal is to carve out an entirely new market for its goods that is differentiated from those already in existence. EcoYachts is pursuing ______ marketing strategy.

a sustainable value innovation

When a company pursues ______ marketing strategy, it hopes to render the competition irrelevant by offering the consumer products of greater value for a lower price.

a sustainable value innovation

As shifting consumer sentiment leads purchasers to shun products that waste resources and harm the environment, modern marketers must make ______ efforts part of their overall corporate social responsibility (CSR) strategy in order to give their firms a long-term competitive advantage.

sustainable marketing

Creating new product packaging that uses mostly recycled materials and purchasing carbon offsets for energy used on outdoor advertising are examples of ways a company engages in ______ practices.

sustainable marketing

Hi-Tech Computer Parts has seen declining sales for one of its flagship products. Market research reveals that many customers object to the wasteful plastic packaging the company uses. The company changes to renewable plant-based packaging material and stresses the change in its advertising. Within six months, sales begin to pick up. Hi-Tech Computer Parts is engaging in ______.

sustainable marketing

When a company implements limited change within a single area of the organization, such as purchasing or advertising, it is known as ______ greening.

tactical